Bill > HB2503

This bill allows health insurance entities in Tennessee to offer two types of plans on the marketplace, which is the platform for buying health insurance under the federal Affordable Care Act. First, it permits the sale of "short-term limited-duration plans," which are temporary health insurance policies, provided they meet specific minimum coverage requirements such as a deductible of no more than $10,000 per person or family per term (a defined period for benefits), a maximum out-of-pocket coinsurance of $5,000 per term, and a maximum benefit of $1 million per person per term, along with defined copays for certain services and four tiers of prescription drug coverage. These plans must also adhere to federal duration limits for such plans. Second, the bill authorizes the offering of "hospital indemnity coverage," which provides a fixed payment for specific hospital events regardless of other insurance, allowing individuals to choose from five tiers with deductibles ranging from $2,500 to $15,000. For both types of plans, health insurance entities can set eligibility requirements, and the plans must comply with existing state law regarding health insurance, with federal law taking precedence in case of conflict. The Department of Commerce and Insurance is tasked with creating rules to implement these provisions, and the commissioner will notify the state's legal services office when federal laws or regulations permit the sale of these plans. The effective dates for these provisions are contingent on the passage of federal laws or regulations allowing their sale on the marketplace.